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As a company director, you have a legal responsibility to pay your bills, knowing you cannot (because your bank account is frozen) means technically you are in breach and trading insolvent which is an offence (criminal?) I wonder what companies house would say - how long before you have to tell them!

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It's not insolvency. The bank account is still a company asset, even if slightly less liquid.

It can still mean insolvency. If your clients delay paying their bills you can also be forced to declare insolvency. Even if the clients will definitely pay and cannot be insolvent themselves (e.g. government).

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